VetLikeMe
March-April 2010
Volume 1, Number 2
SBA a Cabinet Level Agency — Not Yet
Senator Olympia Snowe (R-ME) is the Ranking Member of the Senate
Committee on Small Business and Entrepreneurship. Senator Snowe com-
mented below on her letter to the President requesting that the Small
Business Administration (SBA) be elevated to a Cabinet-level agency. The
White House to date has not elevated the SBA. Senator Snowe’s comment
in March, 2010:
Senator Snowe:
―It is regrettable that the President has not followed my advice to make
the Small Business Administration a Cabinet-level position. I am truly
disappointed given the critical role small businesses will play in leading
our economic recovery. That
said, it is essential that we con-
tinue to focus our efforts on pro-
viding our nation‘s small busi-
nesses with the tools they re-
quire to get our economy mov-
ing again, and I hope that we
move quickly to pass a small
business jobs bill in the Senate.”
~~
Congressman
Bob Filner
(D-CA)
Chairman, House
Committee on
Veterans Affairs
Congressman Bob Filner, December 16, 2009, House
Committee on Veterans Administration Oversight
and Investigations Subcommittee:
―The Obama Administration has worked to bring a
higher level of transparency to government and serious
attention must be paid to the acquisition deficiencies at
the Veterans Administration (VA). There is a due lack of
diligence regarding firms that do business with the VA,
no consequences for abusive firms and the process of
self-certification continually leads to fraud.‖
March 11, Hearing of Economic Opportunity
Subcommittee: On deficiencies within the Center for
Veterans Enterprise:
―Today's economy is particularly challenging for veter-
ans, some who have sacrificed work experience or de-
layed education to serve in the military. I, along with
other Members of this Committee, need to know what
resources are needed in order to be successful.‖~~
Even if
you‘re on the
right track,
you‘ll get run
over if you just
sit there.‖
Will Rogers
In this issue of
VetLikeMe:
-Congressional Rep-
resentatives have a
direct affect on busi-
ness opportunities for
SDVOB.
-Reaction from ram-
pant fraud uncov-
ered in the set-aside
program for SDVOB.
Congresswoman Stephanie
Herseth Sandlin, (D-SD)
Chairwoman
House VA Subcommittee on
Economic Opportunity
On March 11, 2010, Chairwoman Stephanie Herseth Sandlin convened the
House Economic Opportunity Subcommittee to examine the role the Center for
Veterans Enterprise (CVE) plays for veteran-owned small business. Operated by
the VA with no formal statutory mandate, CVE‘s current mission is to im-
prove the business climate for veterans, minimize access barriers and inform the
public about the benefits of doing business with veteran-owned small business.
―[this hearing] provided veteran service organizations the opportunity to high-
light issues of concern regarding responsibilities that fall under CVE...It is time
to get this program on the right track and connect veterans with the services that
may help them succeed in their small business ventures.
―CVE‘s function has shifted from assisting Veteran Owned Business and
SDVOB. It has essentially become an information and referrals agency due to
lack of resources and support. There is indeed a lack of transparency in the appli-
cation process and wait time to apply for certification.‖ ~~
Page 2 VetLikeMe Vol. 1, No. 2
We interviewed Mr. Nye about the Government Ac-
countability Report on fraud in the SDVOB program
and the CVE program. Mr. Nye recently introduced
legislation [http://tinyurl.com/yhuzmfw] to put an end
to fraud in the contracting system. The bill would assess fines and criminal penalties for falsifying credentials
in the government contracting and procurement system. SBA would be required to dedicate more resources for
preventing fraud so contracts would be available for legitimate SDVOB.
―It is absolutely unacceptable that some businesses have been allowed to fraudulently and shamefully profit at
the expense of our veterans. I will hold hearings in the Subcommittee on Contracting and Technology to thor-
oughly investigate this situation and find a solution. Right now, my subcommittee is focusing on continuing
our investigation into the reports of fraud and abuse in the SDVOB contracting program. The GAO study only
scratched the surface, and before I move forward with passing a reform bill, I want to get to the bottom of the
problem. My next hearing is scheduled for late April.‖
VLM:
Currently there are no penalties for companies that falsify their qualifications and abuse the SDVOB program.
Do you think there should be a deterrent to committing fraud?
Mr. Nye:
If you break the law and defraud our veterans, there should absolutely be consequences. My bill would insti-
tute penalties for businesses that cheat to gain an unfair advantage.
VLM:
What do you expect from these proposed hearings?
Mr. Nye:
Over the coming weeks and months, I will be calling in government acquisition officials, representatives from
the SBA and SDVOB owners to hear from them about how this fraud is hurting veterans and how
we can best fix it.
VLM:
Is there bi-partisan support for your proposed legislation?
Mr. Nye:
Supporting our veterans and stopping fraud should not be a partisan issue, and I‘m confident that both Repub-
licans and Democrats will come together to stand up for America‘s SDVOB. ~~
Congressman Glenn Nye (D-VA)
Chairman
House Small Business Subcommittee on
Contracting and Technology
Volume 1 , Number 2 V e t l i k e m e Page 3 VetLikeMe Vol. 1, No. 2
Featured Interview:
Nydia Velazquez, Chairwoman, House Committee on Small Business
At a November 19, 2009 hearing of the House Committee on Small Business, GAO
officials testified that they discovered a lack of fraud prevention measures within the
SDVOB set-aside program. Ms Velazquez condemned the fraud as "...nothing short of
appalling." VetLikeMe interviewed the Congresswoman in March, 2010.
VLM:
What, Ms Velazquez, is a remedy for this situation?
Ms Velazquez:
As shown by the GAO report, the program cannot be policed through a self-
certification system that is currently being used. Fraud within the federal marketplace is
never an acceptable thing. But it is particularly troubling when it comes at the expense of our veterans. The
disabled veterans contracting program was established as a means of empowering these men and women. With
unemployment for severely disabled soldiers at 85%, it is particularly important today.
And yet we now have reason to believe the disabled veterans program is being exploited by unscrupulous
dishonest businesses that have cheated our veterans out of countless opportunities. This sort of abuse is more
than a simple injustice. It is criminal, and it needs to be addressed immediately, not weeks or months down the
road.
VLM:
The SBA is mandated with enforcement authority, but lack of resources prohibits adequate safeguards to pre-
vent fraud. What should the government do?
Ms Velazquez:
For these kinds of procurement issues, the SBA has the appropriate expertise. The [House] committee's con-
cerns are not limited to SBA programs alone. Overall, procurement has become increasingly complex for
small companies. Misguided efforts to streamline the process have contributed to a surge in contract bundling
and a culture of cutting corners.
VLM:
The SDVOB set-aside program has no penalty for businesses that claim to be SDVOB. Would you support a
substantial penalty on these businesses?
Ms Velazquez:
The committee is not only going to look for ways to support the disabled veterans contracting program, but
to hold the individuals accountable that have sought to game the system at the expense our nation's SDVOB.
~~
VetLikeMe provides service-disabled veteran owned businesses information relevant to us. We search and analyze news and
information from many sources to help keep our business relevant and successful. Who are we? BluePoint Productions, a
SDVOB specializing in communications-related services. Public and media relations, communication strategies,
special events and communications products are our specialties. ~~
Comments and suggestions are encouraged. [email protected] www.bluepointgov.net
Page 4 VetLikeMe ` Vol .1, No. 2
Why Fraud Makes Good Business Sense
Amidst the discoveries of fraud in the government procurement program for
disabled vets, we ask ourselves…why? Why do companies lie about their
qualifications to gain government contracts?
When there are no penalties for defrauding the American public, it makes sense to pretend
your company deserves the SDVOB set-asides.
Here‘s the thinking:
IF we win the contract (and we have as good a chance if not better than deserving SDVOB),
we proceed as normal with the contract terms. IF we submit false credentials and our lies are
somehow uncovered, there are NO consequences! – and we can:
(1) keep the contract we scalped from SDVOB. We know that government procurement is a
busy, frantic process. Under deadline pressure, contracting officers want bids and awards to go
smoothly -- so contracting officers would rather do it quickly than fully investigate bidders.
(2) we can still bid on future government contracts.
(3) we can still bid on set-asides we really aren‘t eligible for.
What‘s the deal here? Businesses that win SDVOB contracts through fraud are doing the right
thing for their business. Let‘s face it. Business involves risk.
Calculated risk, and safe risk is good risk.
So why not falsify? Why not say you were injured in the military? It gives
an edge—the battleaxe of business is the edge you have—or the edge you
can get. It‘s pure Machiavellian – ―the end justifies the means.‖ Or the
Vince Lombardi axiom: ―Winning isn‘t everything, it‘s the only thing.‖
Not a bad thing, eh? The government won‘t find out unless a protest is
filed. And struggling SDVOB don‘t have time to protest—they‘re gunning
for other contracts. And if it couldn‘t get any better for those who lie—it
does…no one gets charged with anything—no perjury, no nothing. The ab-
solute ONLY way fraud is discovered is if the contract award is protested,
..and that ain‘t gonna happen. Not bad for scamming businesses, eh?‖
The only punishment for doing this involves CVE—the office within the VA that certifies
SDVOB. But CVE only applies to businesses that do business with the VA. CVE will
‗debar‘ a company that is caught falsifying credentials. This means CVE will take the fraudu-
lent business out of the VA‘s database of SDVOB. That‘s the beauty of self-certification. So
what if a company is ‗debarred from as an SVDOB within the VA? They can still bid on other
government contracts, and they probably will get consideration for SDVOB set-aside awards.
A shady company is smart to bid with false credentials because self-certification is toothless.
There are simply no consequences for lying.
In the SDVOB set-aside self-certification program, there is never a fine—ever.
Page 5 VetLikeMe Vol .1, No. 2
Editorial Hardy Stone
Leading the Way on Fighting Fraud
California—with its millions of active duty military, retirees, combat disabled vets, return-
ing disabled vets from the Middle East—California may be setting the stage for the country.
An interesting piece of legislation is working its way through the state government that shows
promise for SDVOB. If passed, the legislation would penalize companies that misrepresent
themselves.
VetLikeMe continues to monitor this legislation through the CA State system. We‘ll interview
the principle players involved. Copy and paste the link below into your browser to see what we
hope will spread throughout the nation.
http://tinyurl.com/ylfjzjo
Social Networking has taken the globe by storm….SDVOB are taking advantage
of this medium to develop partnerships and share pertinent
news. Here‘s a look at two social networks for SDVOB. Vet-
LikeMe is monitoring these networks and will feature remarks
and questions from members. Check them out and join.
Go to Linkedin.com. Create an account. Click on ―Groups Directory‖ and type SDVOB. You‘ll
see several groups. The first one listed as SDVOB we‘ve found to be most productive and in-
formative. Once you sign up, when another member makes a comment or a post, you will be
notified by email.
During the GAO fraud investigations last November, Will B. suggested that SDVOB form a
Political Action Committee...plans are underway.
Another very important comment and call to action:
"...the main thing that we can do is advocate for enforcement of the SDVOSB laws. Become a
lobbyist, go out of your way to meet and talk to politicians on every level and tell them you ex-
pect their support for Disabled Veteran laws. It has paid off in Michigan and other States that
now have laws supporting SDVOB's. We are years behind the other groups but they are very
aware of us and are fighting hard to block the law changes from "may" to "shall". If you don't
think that we have a lot of opposition you are fooling yourself. Keep pushing, Keep fighting
and let‘s hope that our Veteran children or grandchildren benefit from our efforts."~~
Page 6 VetLikeMe Vol .1, No. 2
Page 7 VetLikeMe Vol .1, No. 2
Much the same on Facebook. Go to Facebook.com. Create an
account then use the search feature for ―SDVOB.‖ Thanks
Paul M. for your informative posts.
These communities are not places to solicit, but unfortunately some people take every op-
portunity to market themselves. It‘s easy to separate the wheat from the chaff. Sit back
and listen, then join the conversation.
Service Disabled Veteran-Owned Small Business Luncheon
Fort Myer Officer‘s Club, Arlington, VA
April 29, 2010. Luncheon hours: 11:30 am – 1:30 pm.
Registration required. Contact: [email protected]
Next Issue:
—VetLikeMe will explore the ‗parity‘ issue between HUBzone set-asides, 8(a),
and SDVOB.
—Senate Small Business and Entrepreneurship Committee—Interviews with Senators
Landrieu and Snowe.
—Interviews with SBA, CVE officials.
VetLikeMe is published bi-monthly by BluePoint Productions, SDVOB, Walkersville, Maryland
Editor and publisher: Hardy Stone
Copy editors: David Savage, Rachael Stone
This newsletter may be forwarded and reproduced.
Copyright BluePoint Productions, April 2010 [email protected] www.bluepointgov.net
Photo, illustrations and interview credits:
Cactus Farm Graphics cactusfarmgraphics.com/
House Committee on Veterans Affairs: Krystal DeKleer
House Committee on Small Business - Majority Staff : Duncan Neasham
Congressman Glenn Nye: Clark Pettig
Congresswoman Nydia Velazquez: Alex Haurek